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Thursday, 2 July 2009

UAE banks exposed to Saudi firms

More than 10 banks in the UAE are involved in syndicated loans worth US$767.5 million (Dh2.81 billion) to two troubled Saudi conglomerates, according to a document obtained by The National.

The total loan exposure of 88 global banks to the two firms, the Saad and Al Ghosaibi groups, amounts to just over $7.4bn, according to the document circulating among some bankers. The document reveals in more precise detail than before the exposures of banks to a series of large loans made to Saad Group, Ahmad Hamad Al Ghosaibi & Brothers, and their subsidiaries.

They include a $2.8bn loan to Saad Investments, a $2.75bn loan to Saad Group, a $300m term loan to Saad Trading and $610m in two loans to the Bahrain-based Awal Bank, which is controlled by Saad.

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